Question

HSA

Forum|Forum|2 years ago
February 27, 2024
1 reply
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Hi,

I am retired and don't work. My wife still working and have High Deductible Health Plan. I am with her HDHP as depended. She also have single Health Saving Account (HSA).

We do not want have family HSA. Can I open single HSA , to increase my tax deduction?

Thanks for your assistance,
Maury

M

Mike9241

since your wife's HDHP covers you you have a family HDHP. (IRS rule if one has family coverage both have family coverage) Thus the maximum HSA between the two of you (2-hsa accounts) is the family max of $7750, provided you are not covered by nonqualifying health insurance and neither is over 55. there is no such thing as a family HSA. They are individual accounts. so if your wife has an HSA in her name you can establish one in your name. what you can contribute depends on what her's was for 2023. So your max assuming the limit is 7750 is 7750 less what went into her plan for 2023. you have until 4/15/2024 to make your contribution for 2023

do realize that nothing is gained from a tax standpoint by having two HSAs. since with family coverage your wife can contribute the max to her account (either through her employer and if the max is not reached, she can make personal contributions. Her HSA can be used to pay for your medical expenses.

there might be a downside to having two a/c's if there were fees for maintaining the accounts.

M

maury2Author

Thank you for your explanation regarding HSAs. My second question pertains to the catch-up contribution of $1,000 available to individuals aged 55 or older. Both my wife and I are over the age of 55. However, under our family HSA, the catch-up contribution is only $1,000 total. If we were to each have our own single HSAs, would we be eligible to contribute $1,000 to each account for a total catch-up contribution of $2,000? Am I correct in this understanding?

M

MayaD

If you're married and both you and your spouse have separate HSAs, each of you are eligible to make $1,000 catch-up contributions.

Rules for Married People

The rules for married people apply only if both spouses are eligible individuals. If either spouse has family HDHP coverage, the family contribution limit applies; both spouses are treated as having family HDHP coverage.

If both spouses are 55 or older and not enrolled in Medicare:

Each spouse is entitled to increase his or her contribution limit with an additional contribution.
Their maximum total contributions under family HDHP coverage would include a catch-up contribution for each spouse.
The contribution limit is divided between the spouses by agreement. If there is no agreement, the contribution limit is split equally between the spouses.
Any additional contribution for age 55 or over must be made by each spouse to his or her own HSA.

HSA Limits on contributions

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